Integration of Suppliers and Manufacturers within Construction Supply Chains through Innovative Procurement Strategies

Recent innovative initiatives within the public sectorconstruction procurement are challenging traditional, non-relationalways of procuring construction projects. The new concepts andpractices involved in innovative procurement methods forconstruction are intended to empower clients to exercise more controlover the supply chain and generate more co-operation among projectparticipants. The initiatives aim to: bring project members closertogether; integrate the supply chain; create greater trust; developrelationships on a long term basis; introduce a pain and gain culture;and reuse the knowledge on succeeding projects. This paper, withexamples from the UK construction industry, presents ways clients arecurrently exercising their roles in order to integrate the downstreamsupply chain members, including suppliers and manufacturers ofproducts. This paper particularly highlights the benefits of, and themotivation towards innovative procurement resulting into integrationof downstream supply chain members through two case studies, doneas part of a supply chain integration project at the Salford Centre forResearch and Innovation (SCRI). The case studies demonstrate howorganisations involved have promoted innovative thinking across thesupply chain through innovative procurement. The case studies alsohighlight some of the critical factors in integrating suppliers andmanufacturers at the beginning of any project. The paper concludesthat through clients’ initiatives, there is a great potential to utiliseexpertise and knowledge of suppliers and manufacturers at the outsetof a project, in order to achieve effective planning and delivery of the whole project, as well as greater integration among supply chainmembers working on the project.